Grindrod completes first freight test under South Africa’s open-access rail plan

South Africa’s plan to bring private operators onto its state-owned freight railway network has reached a practical milestone, with Grindrod completing its first test journey carrying nearly 3,000 tonnes of freight between Mpumalanga and the Mozambique border. 

The two-day operation, which began on November 1 and ended on November 2, involved a train travelling between Komatipoort and Belfast. The train departed Komatipoort empty before returning with 2,991 tonnes of freight, marking an important stage in Grindrod’s preparations to launch commercial rail services. 

For the Johannesburg Stock Exchange-listed logistics group, the exercise is a step towards establishing a dedicated coal transportation service linking South Africa’s mining region to its Matola Terminal in Mozambique.

Private rail operators prepare for entry 

Grindrod’s test comes under South Africa’s open-access rail programme, which allows independent freight operators to use Transnet’s railway infrastructure through allocated operating slots. 

The initiative is intended to introduce additional capacity and private investment into a railway system that has traditionally been dominated by state-owned Transnet. However, completing the test journey does not automatically guarantee Grindrod permission to begin commercial operations. 

The company must satisfy the relevant safety and operational requirements, including obtaining a permit from the Railway Safety Regulator and finalising arrangements under its Rail Access Agreement with Transnet’s Rail Infrastructure Manager.

The test involved engineering simulations conducted by Transnet Freight Rail and Grindrod teams to evaluate rolling stock performance. 

It also examined railway infrastructure, operating procedures and coordination between Transnet’s operating divisions and Mozambique’s CFM railway network. Grindrod Rail CEO Siyanda Mba, who assumed the position on October 1, said the exercise would help establish an operating model capable of delivering reliable services to customers.

288,000 tonnes target for first year 

Grindrod intends to begin commercial operations in 2027, initially targeting approximately 288,000 tonnes of freight annually. The company plans to achieve this through two allocated weekly rail slots, primarily transporting coal from Mpumalanga to its Matola Terminal. 

Its initial operating fleet will comprise four locomotives and 50 wagons drawn from existing assets.

The next expansion stage would involve securing a third weekly slot, potentially increasing annual transportation volumes to approximately 432,000 tonnes, depending on additional capacity allocations and customer demand.

$6 million Wagon investment 

Expanding to three weekly services will require another 50 wagons, representing an investment of approximately R100 million($6.05 million). Mba says the additional wagons have already been ordered and are expected to arrive during the first half of 2027.

The company intends to use its existing locomotives rather than immediately commit capital to additional traction equipment. 

Although coal will provide the initial cargo base, Grindrod plans to consider other dry-bulk commodities that complement its existing port and terminal operations as the business develops.

The broader commercial opportunity extends beyond railway transportation. By connecting inland mining operations with its Mozambique port infrastructure, Grindrod aims to improve the movement of commodities across the regional logistics corridor. 

Mba said the company’s expansion would depend on customer demand, railway performance and access to additional operating slots, with the initial phase intended to demonstrate the viability of its rail service before further investment.

For South Africa’s freight industry, the test offers an early indication of how private operators could participate in the country’s railway system, potentially creating additional capacity and improving the movement of export commodities to international markets.